Dianomi accepts takeover offer from Taboola.com at up to GBP27 million

Dianomi PLC has accepted a takeover offer from Taboola.com worth up to £27 million, the two companies said on Friday.

London-based Dianomi provides digital advertising services to clients in the finance and lifestyle sectors, including Charles Schwab, Invesco and Baillie Gifford, displaying their advertisements on media sites such as Reuters, CNN Business, Times and Wall Street Journal.

Earlier this month, Dianomi reported a pretax loss of £287,000 in the six months that ended June 30, narrowed from a loss of £694,000 a year before, on marginally higher revenue of £13.4 million.

Taboola.com is a New York-based peer, operating the Realize advertising technology platform, used by publishers such as NBC News and Yahoo.

Taboola Europe Ltd, a wholly owned subsidiary, will pay 64 pence per Dianomi share in cash, valuing the UK company at £19 million. The offer also will come with a 'contingent consideration unit' which could pay up to an additional 24p per share. This would value Dianomi shares at up to 88p and the company at £27 million.

Dianomi share were up 74% to 66.00p in London on Friday morning.

The contingent consideration depends on Dianomi's publishing clients agreeing to incorporate some provisions of Taboola's standard terms into their agreements.

Dianomi said its board unanimously recommends the offer. Shareholders representing 75.3% of the total have agreed to the deal already, including the 10.4% held by directors.

"As the digital advertising market continues to evolve, we believe the combination with Taboola will provide Dianomi with the additional scale, technology and resources to compete and grow in this changing market," explained Dianomi Co-Founder & Chief Executive Officer Rupert Hodson.

"The Dianomi board believes the acquisition represents an attractive outcome for shareholders and creates a strong platform for the future of the business."

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